In Part 1 of this episode of "Just a Couple Dentists," we dive deep into our journey of selling our dental practices, a process that has been years in the making. As we reflect on our experiences, we share the challenges, decisions, and strategies that led us to this pivotal moment in our careers.
We start by discussing the initial emotional turmoil surrounding the decision to sell. With one of us feeling burnt out from managing the practices and the other focused on developing a new software venture, we realized that our passion for dentistry was waning. Despite our practices generating around $3 million a year in production, the stress of daily operations was taking its toll. We emphasize the importance of ensuring that any decision to sell was not purely emotional but based on solid financial reasoning.
As we outline our approach, we detail the steps we took to prepare for the sale. This included analyzing our practices' financials, exploring different selling options—such as selling to a private dentist versus a Dental Service Organization (DSO)—and understanding what DSOs look for in a practice. We highlight the significance of having a clear plan for our next steps post-sale, as well as the importance of maintaining profitability during the transition.
Throughout the episode, we share insights on how we optimized our practices for sale, including managing costs, scaling down hours, and ensuring our practices were attractive to potential buyers. We discuss the factors that make a practice appealing to DSOs, such as growth potential, payer mix, location, and the number of doctors at each location.
We also recount our initial attempts to sell the practices ourselves, which led to some humorous and eye-opening moments. Realizing the complexities of the process, we decided to enlist the help of a broker who had a proven track record in the industry. We discuss the criteria we used to select the right broker and the importance of finding someone who aligned with our goals and values.
We then outline our specific goals for the sale, including the option for a quick exit, favorable financial terms, and the ability to maintain autonomy in our practices post-sale. We emphasize the need for transparency and a strong reputation in the DSO we chose to partner with.
